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Foreign aid and sustainable inclusive human development in Africa

Author

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  • Simplice A. Asongu

    (Yaoundé/Cameroon)

  • Joseph Nnanna

    (The Development Bank of Nigeria, Abuja, Nigeria)

Abstract

Motivated by evidence that extreme poverty has been decreasing in all regions of the world with the exception of Africa, the study contributes to the literature on reinventing foreign aid by assessing if development assistance can sustain inclusive human development. The empirical evidence is based on 53 African countries with data for the period 2005-2012 and Generalised Method of Moments. The adopted foreign aid variables include: aid for social infrastructure, aid for economic infrastructure, aid to the productive sector, aid to the multi sector, programme assistance, action on debt and humanitarian assistance. The results reveal that whereas foreign aid improves inclusive human development in the short-run, it decreases it in the long term. Policy implications are discussed with particular emphasis on reinventing foreign aid for sustainable development in the post-2015 development agenda.

Suggested Citation

  • Simplice A. Asongu & Joseph Nnanna, 2018. "Foreign aid and sustainable inclusive human development in Africa," Research Africa Network Working Papers 18/044, Research Africa Network (RAN).
    • Handle: RePEc:abh:wpaper:18/044
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    Cited by:

    1. Uchenna Efobi & Simplice Asongu & Ibukun Beecroft, 2018. "Aid, Terrorism, and Foreign Direct Investment: Empirical Insight Conditioned on Corruption Control," International Economic Journal, Taylor & Francis Journals, vol. 32(4), pages 610-630, October.
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    3. Bosede Ngozi Adeleye & Sodiq Arogundade & Biyase Mduduzi, 2023. "Empirical Analysis of Inclusive Growth, Information and Communication Technology Adoption, and Institutional Quality," Economies, MDPI, vol. 11(4), pages 1-21, April.
    4. Elvis Dze Achuo & Tii N. Nchofoung & Simplice A. Asongu & Gildas Dohba Dinga, 2021. "Unravelling the Mysteries of Underdevelopment in Africa," Working Papers of the African Governance and Development Institute. 21/073, African Governance and Development Institute..
    5. Oludele Folarin & Isiaka A. Raifu, 2022. "Attaining Sustainable Development Goals (SDGs): New evidence on foreign aid and the “bundling†of domestic revenue mobilization in Sub-Saharan Africa," Working Papers 22/088, European Xtramile Centre of African Studies (EXCAS).
    6. Giyoh G. Nginyu & Dobdinga C. Fonchamnyo & Boniface N. Epo & Simplice A. Asongu, 2023. "The effects of institutional quality and biocapacity on inclusive human development in Sub-Saharan Africa," Working Papers 23/044, European Xtramile Centre of African Studies (EXCAS).
    7. Hillary Chijindu Ezeaku & Ifeoma C. Nwakoby & Obiamaka P. Egbo & Josaphat U. J. Onwumere, 2019. "On the Dynamic Effect of Bilateral Concessional Debts on Living Standards in Sub-Saharan Africa," SAGE Open, , vol. 9(3), pages 21582440198, September.
    8. Isaac Doku, 2022. "Are Developing Countries Using Climate Funds for Poverty Alleviation? Evidence from Sub-Saharan Africa," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(6), pages 3026-3049, December.

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    More about this item

    Keywords

    Foreign Aid; Sustainable Development; Africa;
    All these keywords.

    JEL classification:

    • B20 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - General
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • F50 - International Economics - - International Relations, National Security, and International Political Economy - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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